Tuesday, 8th March 2022

SEBI has directed Dish TV India Ltd to disclose the results of its 10-Dec AGM to the stock exchanges within 24 hours. Yes Bank and IndusInd Bank had complained that Dish TV had wrongly withheld results. These 2 banks hold 28.56% stake in Dish TV between them. Dish TV was supposed to disclose the results before 03-Jan 2022. Depositories have been asked to freeze the demat accounts of the directors till voting results of the AGM were disclosed. Yes Bank has been calling for the removal of Jawahar Lal Goel from the Board.

In the light of the sharp spike in Brent Crude to beyond $125/bbl, Barclays revised CPI inflation estimates for the Indian economy from 4.5% to 5.1% for FY23. RBI had pegged FY23 retail inflation at 4.5%. This hike is assuming an average crude price of around $110/bbl. Barclays has also said that the geopolitical risks in Russia and Ukraine could also trigger food inflation in a big way. Barclays is apprehensive that these high inflation levels could act like a speed bump for the Indian economy just recovering from Omicron variant.

Navi Technologies, founded by former Flipkart co-founder Sachin Bansal, is planning a Rs.4,000 crore IPO. It is expected to file its DRHP with SEBI during the current week. The issue will be lead managed by ICICI Securities, BOFA Securities and Axis Capital. Navi Technologies plans to come out with its IPO in the first quarter of FY23 and will use the proceeds of the IPO for bankrolling its growth plans. Navi is a technology driven financial services provider and offers personal loans, home loans, insurance and mutual funds.

One 97 Communications, the promoter of Paytm, hit a new low of Rs.751 and the market cap fell below Rs.50,000 crore for the first time. It had issued the IPO at Rs.2,150 at an implied market cap of Rs.1.39 trillion. In a way the rapid trend shift from e-commerce to Q-commerce has been one of the main reasons why investors have been sceptical about traditional digital plays. Of course, aggressive pricing, sustained losses and high levels of cash burn are also key factors. The choice is much wider today for the investors.

TCS will overhaul its organizational structure with specialized groups to double its revenues to $50 billion by 2030. The 4 new internal groups will focus on business transformation, incubation, enterprise growth and innovative business models. The idea is to align their internal structure with the changing needs of its clients, with the biggest focus now on digitization. The company has already reported annual revenues of $25 billion so we are talking of doubling in 8 years, which is an annualized growth of 9%, not too tough.

ICICI Bank will raise Rs.8,000 crore via infrastructure bonds to fund projects in transportation, power and affordable housing. CRISIL has already assigned “AAA/Stable” ratings for Rs.10,000 crore of bonds, which ICICI can also raise in tranches. It will most likely be a Rs.500 crore issue with a Greenshoe option of Rs.7,500 crore additional retention. The paper will have a 10-year tenure and the coupon is expected to be around 7.25%, although it is yet to be announced. These funds will be exempt from the CRR/SLR norms.

Microsoft plans to establish its largest India data centre in Hyderabad with the first phase operational by 2025. Incidentally, Hyderabad has the second highest number of employees on Microsoft rolls after its headquarters in Redmond. Microsoft, according to an IDC report, has added 1.5 million jobs in India, both direct and indirect. Some of Microsoft’s  biggest customers in India include Reliance Jio, Infosys, TCS, ICICI Bank, Bajaj Finserv, Apollo Hospitals, Piramal Enterprises, Reddy Labs, SBI etc. It will be a green centre.

JK Cement announced its entry into the paints business and, not surprisingly, the markets gave a thumbs down to the stock considering the operating margin pressures that paints companies are currently facing. JK Cement will invest Rs.600 crore over 5 years and targets paint revenues of Rs.850 crore. Investors were clearly not too happy with this capital allocation decision as paints is also an extremely competitive sector with high entry barriers. Big names like Grasim have already committed to invest Rs.5,000 crore in paints.

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